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FOR IMMEDIATE RELEASE
OLDWICK - DECEMBER 06, 2019 09:17 AM (EST)
AM Best has commented that it expects the Credit Ratings (ratings) of Industrial Alliance Insurance and Financial Services Inc. (IA) and its related companies to remain unchanged after iA Financial Group announced its forthcoming acquisition of the American company, IAS Parent Holdings, Inc. (IAS), and its subsidiaries. IAS is one of the largest providers of vehicle warranty solutions in the United States, providing a broad offering of warranties along with software and service capabilities across the United States through a large network of dealers. iA Financial Group believes that the transaction will complement its existing operations and expects it to be accretive to earnings in its second year. The agreed upon purchase price of USD 720 million is to be funded by excess capital at iA Financial Group and is expected to close in the first half of 2020. As a result, it is anticipated that regulatory capital will decline temporarily after the transaction. AM Best is in the process of its annual rating review of IA and its subsidiaries. The ratings of IA and its subsidiaries were last affirmed in February 2019.
This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
AM Best is a global credit rating agency, news publisher and data provider specializing in the insurance industry. The company does business in more than 100 countries. Headquartered in Oldwick, NJ, AM Best has offices in cities around the world, including London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.